Most bunker benchmarks across major global ports have moved within a narrow range, while rough weather has increased lead times in Houston this week.

IMAGE: Aerial view of Houston Ship Channel. Port of Houston

Changes on the day to 09.00 GMT today:

• VLSFO prices up in Zhoushan ($2/mt), and down in Houston ($21/mt), Gibraltar ($6/mt), Rotterdam and Singapore ($3/mt)
• LSMGO prices down in Houston ($8/mt), Zhoushan ($7/mt), Gibraltar ($5/mt), Rotterdam ($4/mt) and Singapore ($3/mt)
• HSFO prices up in Houston ($4/mt), and down in Zhoushan ($4/mt), Gibraltar, Singapore ($3/mt) and Rotterdam ($1/mt)
• B30-VLSFO at a $269/mt premium over VLSFO in Singapore
• B30-VLSFO at a $285/mt premium over VLSFO in Fujairah
• B30-VLSFO at a $381/mt premium over VLSFO in Gibraltar

Houston’s HSFO price has gained, while the port’s VLSFO price has plunged by $21/mt, narrowing the port’s Hi5 spread to $59/mt today from $84/mt on Wednesday.

Weather conditions at the port have been rough throughout this week amid the ongoing fog season in the US Gulf Coast.

The Houston Pilot Association suspended all ship transits on Wednesday evening, after briefly opening to outbound traffic earlier in the day.

Bad weather conditions are likely to impact bunkering schedules at the port, a trader told ENGINE. Suppliers are recommending extended lead times for all three conventional fuels at the port.

VLSFO prices across the three major East of Suez ports have remained largely rangebound over the past day. Zhoushan’s VLSFO price is at premiums of $39/mt over Singapore and $38/mt over Fujairah.

Bunker demand in Zhoushan remains weak, with suppliers advising lead times of 4–6 days for both VLSFO and LSMGO, almost unchanged from last week. HSFO now requires around 5–7 days of lead time, compared with 4–7 days previously.

Meanwhile, Amsterdam’s LSMGO benchmark has remained unchanged, even as prices have slightly fallen in Rotterdam and Antwerp. A higher-priced 150-500 mt LSMGO stem fixed at $637/mt in Amsterdam has provided support to the port’s benchmark.

Availability of all fuel grades in the ARA hub remains tight for prompt deliveries, with buyers advised to book at least 5-7 days in advance to secure offers from a wide selection of suppliers, a trader said.

Brent

The ICE Brent Futures market is closed for trading today on account of Christmas. Front-month ICE Brent closed at $62.24/bbl on Wednesday, which is $0.32/bbl lower than the price at 09.00 GMT on the same day.

Upward pressure:

Brent futures have found support this week amid growing concerns of potential supply disruptions linked to Venezuela and Russia. Ongoing attacks by Russia and Ukraine on each other’s energy infrastructure have added fresh upward pressure to prices, market analysts said.

In Venezuela, more than a dozen oil tankers already loaded with crude are waiting for new instructions after the US seized the tanker Skipper earlier this month and targeted two more vessels over the weekend, according to Reuters. The situation intensified last week after US President Donald Trump barred all sanctioned vessels from entering or leaving Venezuela, increasing pressure on President Nicolás Maduro to step down.

Additionally, official data from Baker Hughes showed that the total number of active US oil rigs fell by eight over the week to 406. The rig count is widely viewed as a forward indicator of US shale production, reflecting current and expected drilling activity.

Downward pressure:

Oil prices have come under downward pressure following the American Petroleum Institute's (API) weekly oil inventory report.

API data showed that stockpiles rose by 2.4 million bbls in the week ending 19 December. Such inventory builds are typically seen as a signal of weaker demand and often put pressure on oil prices.

Market participants are now waiting for the release of the US Energy Information Administration’s (EIA) oil inventory report on Monday. The report has been delayed this week due to the Christmas holiday.

By Nachiket Tekawade, Gautamee Hazarika and Tuhin Roy

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